Markup & Margin Calculator
Calculate selling price, profit, markup, and margin from cost. Enter a markup percent, a margin percent, or a sale price to solve for the rest.
Sale Price
$70.00
Markup % (profit ÷ cost)
40.00%
Margin % (profit ÷ price)
28.57%
Sale Price
$70.00
Profit
$20.00
Markup %
40.00%
Margin %
28.57%
Markup= profit ÷ cost · Margin = profit ÷ selling price. Because markup divides by the smaller number (cost), it is always higher than the margin percentage for the same transaction.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the profit expressed as a percentage of the cost price. Margin (also called gross margin) is the profit expressed as a percentage of the selling price. For example, if you buy something for $50 and sell it for $70, the markup is 40% ($20 ÷ $50) but the margin is 28.57% ($20 ÷ $70). Because they use different denominators, markup is always higher than margin for any given transaction.
How do I calculate selling price from cost and margin?
Use the formula: Selling Price = Cost ÷ (1 − Margin%). For example, to achieve a 40% margin on a $50 cost item, the selling price is $50 ÷ (1 − 0.40) = $83.33. Note that margin must be less than 100% or the formula produces an infinite price.
What is a good profit margin?
It depends heavily on the industry. Grocery retail often runs 1–3% net margin, while software and pharmaceuticals can exceed 20–30%. A common rule of thumb for small retail businesses is a gross margin of 40–60%. The most important benchmark is your own industry average — compare against competitors and cover your operating costs with room to grow.